Cumberland Village Housing Associates v. Inhabitants of Cumberland

609 F. Supp. 1481, 1985 U.S. Dist. LEXIS 19358
CourtDistrict Court, D. Maine
DecidedMay 30, 1985
DocketCiv. 84-0315-P
StatusPublished
Cited by4 cases

This text of 609 F. Supp. 1481 (Cumberland Village Housing Associates v. Inhabitants of Cumberland) is published on Counsel Stack Legal Research, covering District Court, D. Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cumberland Village Housing Associates v. Inhabitants of Cumberland, 609 F. Supp. 1481, 1985 U.S. Dist. LEXIS 19358 (D. Me. 1985).

Opinion

MEMORANDUM OF DECISION

GENE CARTER, District Judge.

I.

Plaintiff, Cumberland Village Housing Associates (Cumberland Village), is a limited partnership which applied to appropriate agencies of Defendant, Inhabitants of the Town of Cumberland (the Town), before March 26, 1984, for approval of a 70-unit apartment complex. The Town’s Planning Board reviewed the subdivision application and, in accordance with Section 7.15 of the Town’s subdivision ordinance, referred to the Town Council the question as to whether the proposed development would “be a burden” on the Town’s sewer system. On March 26, 1984, the Town Council, noting a limited capacity of the sewer system, enacted a 90-day moratorium on action by the Planning Board with respect to applications for buildings that proposed to use the sewer system.

On June 25, 1984, the Town Council, following a public hearing, adopted a formula for allocation of remaining sewer user units and voted to inform the Planning Board that the Cumberland Village project would impose an “undue burden” on the existing sewer system. After obtaining a clarification of the Town Council’s action with respect to Cumberland Village, the Planning Board advised Cumberland Village on or after July 11,1984, that it would take no further action on its subdivision application.

Cumberland Village brought this action challenging the Town’s rejection of its subdivision application. The Farmers’ Home Administration (FmHA) has joined as a Plaintiff. FmHA, which agreed to provide up to 2.5 million dollars in funding for the Town’s sewer project, contends that the Town’s rejection of Cumberland Village’s application violates FmHA’s agreements with the Town.

Plaintiffs contend that the Town’s denial of Cumberland Village’s application for sewer access was unlawful in several respects: that the Town unlawfully applied ordinances to Cumberland Village’s application that were enacted after Cumberland Village filed its application; that the denial violated the Loan Resolution and grant agreement adopted by the Town in connection with its obtaining FmHA funding; that the Town exceeded its authority in enacting the sewer allocation formula; that the formula is unreasonable; that even if the allocation formula is valid and legally applicable, there remains sufficient capacity above and beyond that contemplated in the formula to accommodate Cumberland Village’s needs. 1 Most of the evidence adduced at trial related to this last issue.

*1485 As the Court will explain in greater detail, it has found that the Town applied the moratorium and the sewer use allocation formula to Cumberland Village’s application. Under Maine statutory and case law, application of these ordinances to a pending application was unlawful. Therefore, the decision of the Town Council must be vacated, and the application remanded to the Town for reconsideration. Since reconsideration of the primary action complained of is necessary, the Court does not reach the other claims raised by Cumberland Village and FmHA.

II.

Initially, the Court must address the question of whether it has subject matter jurisdiction over all of the claims in this case. The Court clearly has jurisdiction over Plaintiff FmHA’s claims under 28 U.S.C. § 1345, which confers federal jurisdiction in all cases in which the United States is a plaintiff, and 7 U.S.C. 1981(e), which authorizes the Secretary of Agriculture to sue to enforce its claims. The jurisdictional basis for Cumberland Village’s claims is less clear. Cumberland Village asserts two theories of jurisdiction. First, it contends that its claims raise a substantial federal question, and that the Court may hear its state law claims under the doctrine of pendent jurisdiction. Second, even if there exists no substantial federal question, Cumberland Village claims the right to bring its claims as a pendent party plaintiff. The Town agrees that jurisdiction exists under the second theory.

The existence of federal question jurisdiction presents difficult issues that have not been satisfactorily addressed by Cumberland Village. 2 The Court has determined, however, that it has power to decide Cumberland Village’s claims under the doctrine of pendent party jurisdiction.

The Court of Appeals for the First Circuit has derived from Supreme Court cases a four-step analysis for determination of the existence of pendent party jurisdiction. See Federal Deposit Insurance Corporation v. Otero, 598 F.2d 627 (1st Cir. 1979). The Court is to determine, first, whether the exercise of jurisdiction is permitted by Article III of the Constitution; second, whether jurisdiction is barred by any express or implied congressional intent; third, whether the procedural posture of the pendent party supports the exercise of jurisdiction; and fourth, whether prudential considerations support the exercise of jurisdiction. Id.

The existence of Article III jurisdiction is determined by applying the standard enunciated in United Mine Workers *1486 v. Gibbs, 383 U.S. 715, 86 S.Ct. 1130, 16 L.Ed.2d 218 (1966). Aldinger v. Howard, 427 U.S. 1, 96 S.Ct. 2413, 49 L.Ed.2d 276 (1976); Owen Equipment & Erection Co. v. Kroger, 437 U.S. 365, 98 S.Ct. 2396, 57 L.Ed.2d 274 (1978); Otero, 598 F.2d at 631. The Court is to determine whether the claims of FmHA and Cumberland Village arise from the same “nucleus of operative facts” and thus involve the same “case” for purposes of Article III jurisdiction. Gibbs, 383 U.S. at 725, 86 S.Ct. at 1138; Otero, 598 F.2d at 631. Here, both FmHA and Cumberland Village complain of the same action, the Town’s refusal to provide Cumberland Village sewer access, and seek the same relief, access to the sewer system by Cumberland Village. Their claims clearly arise from the same “nucleus of operative facts.”

Second, Aldinger teaches that a federal court must also examine the statute conferring jurisdiction in the particular case to determine whether there exists an express or implied congressional intent to prevent the exercise of jurisdiction over pendent parties even though Article III jurisdiction would exist. Aldinger, 427 U.S. at 17, 96 S.Ct. at 2421; Kroger, 437 U.S. at 373, 98 S.Ct. at 2402; Otero, 598 F.2d at 631. The basis for jurisdiction over FmHA’s claims is the broad jurisdictional grant of 28 U.S.C. § 1345, which provides:

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609 F. Supp. 1481, 1985 U.S. Dist. LEXIS 19358, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cumberland-village-housing-associates-v-inhabitants-of-cumberland-med-1985.